With the holiday season nearly behind us, the news concerning retail sales- considered a health indicator of the economy- is grim. In fact, it could actually be stated that retail sales were predictably stale. Americans have financially battened down the hatches. First, there were the outrageous gas prices that hit hard. We learned quickly to restrict our energy consumption as a result. Gas prices are now exceptionally low, and we are retaining that frugal and conservative state of mind. Grocery prices went up, so we learned how to make food go further. There are plenty more examples demonstrating the ways Americans have changed their views on money. In fact, the most significant adjustment we have made is that we have begun selling ourselves- literally.

With the holiday season nearly behind us, the news concerning retail sales- considered a health indicator of the economy- is grim. In fact, it could actually be stated that retail sales were predictably stale. Americans have financially battened down the hatches. First, there were the outrageous gas prices that hit hard. We learned quickly to restrict our energy consumption as a result. Gas prices are now exceptionally low, and we are retaining that frugal and conservative state of mind. Grocery prices went up, so we learned how to make food go further. There are plenty more examples demonstrating the ways Americans have changed their views on money. In fact, the most significant adjustment we have made is that we have begun selling ourselves- literally.

This trend of selling is blazing a widespread path across the country. Online auction sales are up by record numbers as people race to raise needed cash. Postings for items for sale on sites such as Craigslist have exploded, and even items in states of disrepair are being bought and sold every day. Sites that list items for free have experienced growth in listings and new members that was entirely unplanned for. Companies are selling stock. Luxury items such as paintings and gold are suddenly not as luxurious to Americans as the cash value of those items. Women have flocked to Las Vegas for employment in brothels. Participants in lab or medical experiments are on the rise, as are donors of eggs, plasma, blood, and sperm. Already busy families are starting businesses or finding other means of procuring additional income streams. A story even surfaced recently of an elderly woman selling vegetables from her indoor gardens as a means of preventing foreclosure on a Nassau County home. In summary, we are selling our possessions, our bodies, and our time.

Selling on this level is fairly new for Americans. Categorically, we all possess copious amounts of unneeded, unused, and unnecessary belongings. So why not liquidate them? Those items you’ve had in storage but not touched in years? Sell them. That little-used extra car, boat, or other recreational vehicle? Sell it. An attic or basement full of yard sale worthy items? Liquidate them. It might be difficult at first, but ridding yourself of things that you don’t need or use can be exhilarating. Furthermore, you may be helping someone immensely by offering them your used item at a lesser price than one would have to pay for it new. These lessons are hard ones to learn because we are accustomed to living such decadent lives. However, there is a feeling of empowerment that develops when one conserves, reduces, recycles, reuses, and refuses things that one simply does not need. Being self-sufficient is something to be proud of.

So why not make selling a part of your New Year’s resolution? All those items you have cluttering your house, your garages, barns, and closets, may just bring peace of mind in the form of a cash infusion. To supplement this, you will most likely find that getting organized and cleaning things up will help you to concentrate on what is really important- the health of you and your family. This means your emotional, physical, and your financial health.

The economic woes of the United States have been at the forefront of the minds of nearly everyone. Magazines feature countless articles about the deteriorating economy, blogs express frustration and opinions on the bad financial decisions made on Wall Street, and the television reminds us daily that things are going to get worse before they get better. Each month, more and more people are seeking the advice of foreclosure attorneys in Nassau County and Suffolk County.  Companies are folding, and jobs are being lost. The price of practically everything is steadily increasing. As Americans, most of us are very unaccustomed to a restricted or severely limited budget. For this reason, there tends to be this general feeling that things are very bad right now in our country. However, this is not the case in reality, and with the holidays upon us, we could all use a reminder of what we still have.

In the next few days, families will be gathered all across the country. We’ll have lovely dinners together, gifts and smiles will be exchanged, and there will be plenty of wonderful holiday parties to attend. We’ll do what we do every year: we’ll stuff our faces with turkey and ham, candies and cheeses; we’ll knock back a few glasses of eggnog, and we’ll spend a little bit more than our budget might allow on gifts for those that we love. And even though we know it will hurt the wallet and the credit card later on, we will take great joy in doing it anyway.

While all these joyous and fun activities are occurring, it might be wise for us to step back and examine what we really have. For most of us, we have our families, and we have our health. We still drive our cars, talk on our cell phones, and retire each night to watch cable or satellite television. We still eat well. Even those whose homes are foreclosed upon have somewhere to go- there are family, friends, shelters, and inviting places all over the country that will house and feed those in need. We still eat out, and the drive-thru lines at most fast food restaurants are still crowded most of the time. We take warm showers and baths; we sleep in warm beds and snuggle with our pets and loved ones. We email and chat, we video-share and play games, and we listen to music. We watch movies and cook popcorn with extra butter; we go out every so often and have a beer or a cocktail. When we see the Salvation Army Santa Clause we drop our spare change in his bucket.

The point is that yes, times are tough. But are they really so bad? We still have just about everything we had before. And if we lost something as a result of all of this, then thankfully we live in a place where we can rebuild if we have the ambition and the drive to. Because the truth of the matter is that we’ve still got it pretty good. All over the world, children and even entire families will suffer and starve while we celebrate with those closest to us. The wars that rage across the world do not stop while we enjoy our holiday fun. So perhaps this holiday season we can all give ourselves a gift that will make us feel much better: we can dig a little deeper in our pockets for charities, and we can realize that we’re going to be just fine.  

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Every January, as we begin a new year, we also begin a new period of change. Many of us firmly set New Year’s resolutions for things like weight loss, smoking cessation, and perhaps to eat a more healthy diet. Sometimes we stick to these resolutions, and sometimes we don’t. In the coming year, however, we have unprecedented challenges ahead of us that will require dedication and a desire for genuine change on the part of everyday working Americans. So while it is important to resolve to better your physical and emotional health, it will also be vital to better your financial health. This is especially crucial for the many people that have sought the help of qualified foreclosure attorneys in Long Island. Often, foreclosure can be prevented, and by making some financial changes in the New Year and sticking to them, you may be able to avoid foreclosure altogether.

Part of your resolution plan should be to create a comprehensive budget. Be sure to include all of your expenses: the cost of entertainment, lunches and eating out, gifts for family and friends, clothing, salon appointments- all of these types of items often are not included in a person’s budget, and can account for a vast amount of money. Therefore, don’t just calculate the large items like mortgage payments and insurance. Sometimes, you might even find that those “little” expenses total up to more than some of the bigger ones.

Once you have accounted for every one of your expenses, the next step is to determine ways to reduce or eliminate those costs. For example, many people spend nearly one thousand dollars a year on their morning coffee. To spend several thousand each year eating out is also terribly common. These are two examples of expenses that can be easily reduced, or even eliminated outright. Another common way to reduce expenses is to refinance loans- especially mortgages, student loans, and auto loans. More favorable terms, decreased payments, and decreased interest rates are all ways to produce more disposable income. Consider contacting your credit card companies and negotiating for better terms and rates with them as well.

When finished, your budget will tell you how much disposable income you have available each month. That income can then be used to pay down high interest rate balances, or to pay off debts entirely. Apart from doing this, one of your primary money resolutions for 2009 should be to save money. Consult with a qualified financial advisor about ways to safely grow your money. The truth is that you work hard for your money, so it makes sense to make your money work for you by earning its own interest. Bonds, savings accounts, and CD’s are all great ways to save money for your future and that of your family.

Foreclosure is becoming a dirty word that is being uttered ever so much more frequently throughout New York. From Albany to Long Island, foreclosures are on the rise. In fact, so many people are being foreclosed upon that it is almost becoming normal. All of this is occurring despite our best attempts to alleviate the problem. We have Federal programs for homeowners that are not working, and we have banks granting leniencies on loans and terms that are having a minute effect overall on the amount of people still going through foreclosure. Clearly, the government and banking industry solutions are not working quickly enough.

The vast majority of foreclosures are occurring relative to the devaluation of homes. In short, there are thousands of Americans who are holding mortgage notes that have balances far greater than the actual value of the home. Many have simply thrown up their hands and given the keys back to the bank. However, there are a number of steps that could be taken in order to mitigate these foreclosures. In fact, there are 3 specific avenues a homeowner should explore to combat the devaluation of their home.

Landscaping is a great way to improve the value of your home. Immediately, many people think that this would cost a substantial amount of money. However, there is a great deal of landscaping projects that you can accomplish with your bare hands, a shovel, and a wheelbarrow. You can build walkways and paths around your home and grounds by using stones found naturally on your property. Consider diverting a nearby stream to run along a pathway close to your house. Contemplate transplanting trees from wooded areas to line your grounds, lawn, form a screen, or even a fence. Brainstorm ideas for projects that will beautify your property but cost very little.

Indoor projects can increase home value as well, and often require the simplest of tools: hammers, screwdrivers, a saw, a level, sandpaper, and a little paint. Knock down walls that create a cluttered or cramped atmosphere. Repair, replace, or repaint baseboards, door and window frames, or cabinet doors. Enlist the aid and skills of family members or friends that have construction or design experience. Pay them for a day’s work with refreshing beverages, a beautiful dinner or barbecue, and by offering to help them on projects they may have with their own home.

Consider forming a neighborhood coalition. Talk to the members of your immediate locality about the importance of maintaining and beautifying their properties in order for properties in the area in general to hold or increase their value. As a group, you may be able to create a pool of funds for needed neighborhood improvements, and/or form teams that spend a weekend improving one house or property, another property another weekend, and so on. Together, we are much more effective than separate. Remember- if the value of your neighbors’ homes go up, then it stands likely to reason that your will too.

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In Long Island, foreclosures are on the rise.  In fact, both Nassau and nearby Suffolk counties have some of the highest foreclosure rates in the entire state.  The alarming number of for sale signs and vacant homes evidences this.  For many local families, this means that they have had to “downgrade” to a less expensive home, renting an apartment, staying with friends or relatives, or receiving some type of government assistance.  While experiencing a foreclosure can be tough, there should be a relief in that there is a lot of help available for American families and individuals who need it.  Even for those who lose their home and have very little or no resources, there are always shelters available, food programs, and many types of free assistance.  In fact, we should be thankful that we live in such a country.  In other places in the world, families have no options at all. 

There are foreclosures, so to speak, in Gaza.  But it doesn’t occur after you’ve spent a year or two in a home rent-free while a bank slowly works to evict you.  It’s not when you simply decide a house is too much for you financially and you volunteer to give the keys back to the bank.  In Gaza, a foreclosure occurs when a bomb falls from the sky and obliterates everything you own.  In Gaza, a “foreclosure” often kills entire families.  Communities, relationships, and careers are destroyed all at once.  There is no recourse; there is no legal process or attorneys that get involved to help.  There is no leniency, and there are certainly no banking officials willing to lend assistance after listening to a sad story of economic loss.  In Gaza, a “foreclosure” means that, if you survive, you simply walk away from the rubble and start over with nothing.  You pray that your family, friends, and neighbors were not killed or maimed.  You pray that there will be food to eat, water to drink, and somewhere that you can go.  Desert nights drop down to freezing even in the summer, and those who are displaced often die of exposure.  What’s worse is that sometimes these people die from the desperate acts of others in similar situations.

So Americans should take heart.  A foreclosure is not the end of the world.  In fact, it can often be a fresh start- a way to climb out from under a financial burden that many find to be nearly insurmountable.  In the United States, a foreclosure doesn’t kill anyone.  It doesn’t rob you of life and possessions.  It won’t even put you on the street.  There are always options.  So if you are experiencing a foreclosure, you should feel relieved that nothing truly bad or harmful is going to happen to you.  Your loved ones will be safe, your job will likely be unaffected, and you’ll have somewhere warm to go.  Although it is certainly a difficult process to be foreclosed upon, we should give our thanks that we live in such a place where we can easily start our climb to the top again.  Because for other people around the world, this is simply not the case.  Remember this, and it will help you to keep things in perspective.      

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How Can I Prevent or Stop Foreclosure?

Foreclosure. The word alone conjures up ideations of dread and embarrassment. In this current financial crisis, however, it seems that there are none who are impervious to this unnerving new trend. In New York, for example, there was a reported 27.4% increase in Nassau County foreclosure filings just from the second quarter to the third, according to RealtyTrac, a foreclosed properties marketer. As a result of this, there are now a great many homes on Long Island that lay vacant, slowly slipping into various states of disrepair. Ten years ago the thought of vast numbers of foreclosures in one of America’s most desirable areas would have been considered nonsense. Nevertheless, Nassau County residents are no different in that they are feeling the strain of a national housing market gone haywire.

What is it that is causing all of these foreclosures, anyway? Well, the press has been fairly consistent and accurate in reporting that increases in Adjustable Rate Mortgages (ARM’s) and defaults on subprime home loans (which are already risky anyway) led to the current deluge of foreclosures. But if you dig deeper into the issue, you will see another major problem: homeowners were simply walking away from their property.

The real trouble started when the unprecedented housing boom began to collapse inward. Homes lost value so quickly that thousands of owners were left with a mortgage that was much greater than what the home was actually worth. For many, the solution has been foreclosure. However, there are a number of options available to homeowners who are facing a possible foreclosure. As with any situation of this magnitude, consulting with an expert such as a foreclosure attorney will provide you with valuable professional insight. If you find yourself in danger of foreclosure, consider the following:

In July of this year, President Bush signed into law the Hope for Homeowners Act. Under this act, homeowners can petition the federal government to buy their mortgage from their original lender with far more favorable terms. Likewise, a homeowner can refinance their current mortgage if they have sufficient equity, and possibly obtain a lower rate and payment. Other debts can be paid off when refinancing, so balances at high rates of interest like credit cards can be converted into the low-rate refinance. While either of these options can serve to enable a homeowner to avoid foreclosure, the fact remains that if the homeowner still cannot afford the monthly payment, then they are financially doomed unless they seek assistance and act quickly- there are still options available for even the most difficult financial situations.

In a case where the minimum monthly payment cannot be met, and the mortgage cannot be refinanced, selling the home may be a good option, especially if it can be sold at a profit. However, if a sale is not possible or even likely, a homeowner can offer a Deed in Lieu of Foreclosure. This is where the owner “sells” the home back to the lender. Any difference between what the mortgage is worth and what the home is sold for is forgiven by the lender. As an example, if the mortgage carries a balance of $100,000, but the home is only valued at or sold for $80,000, then the bank will forgive the $20,000 dollar difference. Because there are special rules to a Deed in Lieu of Foreclosure- such as the possibility that the forgiven balance may be considered taxable income- it is crucial to seek the advice of an experienced foreclosure attorney.  Lenders agree to Deeds in Lieu of Foreclosure regularly, as this is a way to be rid of particularly risky loans that will cost more to collect on than to simply take as a small loss, comparatively speaking. But again, there are rules that must be adhered to, and you cannot possibly know them all yourself.

One way to buy time against a looming foreclosure is to ask for a forbearance or grace period on payment. When a homeowner is honest with a creditor, and advises them of financial difficulties, the lender is very likely to make concessions. Contrary to popular belief, it is in the best interest of the lender that your home not go into foreclosure. Mortgage companies grant payment “holidays”, forbearances, extended grace periods, and adjustments to existing mortgages to better enable a homeowner to avoid foreclosure. They do this constantly, so use it to your advantage.

Many people do not know that there may be public assistance available. Churches, State and Federal programs, charity organizations, and other forms of public assistance may help with anything from actually paying the mortgage payment to arranging for an attorney.